
Travel expenses are a tricky area for employees, and the laws surrounding them are complex and often hard to understand. However, many taxpayers are not claiming back the travel expenses that they are entitled to. In general, travel between your home and your normal workplace is not tax-deductible, but there are some exceptions. For example, if you have two or more normal workplaces, the cost of travel between them is tax-deductible. Additionally, if you are required to work from home during a lockdown, the cost of travel between your home and your workplace may be tax-deductible. Travel between two workplaces is also considered business travel and so any travel costs can be claimed as expenses. If you are required to use your car for work, you are entitled to a deduction for the costs incurred while at work, but this does not include the cost of your commute unless you are required by your employer to carry bulky tools that cannot be safely secured at work. Other expenses that can be claimed include public transport fares, overnight meals and accommodation, and travel to a work-related course or conference.
What You'll Learn
Travel between two workplaces or jobs
Generally, individuals travelling from home to their workplace cannot claim a deduction because the travel is classified as a private expense. However, you may be able to claim travel expenses when travelling between two workplaces or jobs. Here are some scenarios where you can claim the cost of travel between two workplaces:
- Direct travel between two workplaces: You can claim the cost of travelling directly between two separate workplaces. For example, if you have a second job, you can claim the cost of travelling from your primary job site to your secondary job site. However, you cannot claim the cost of travelling from your secondary workplace back to your home.
- Travel from the normal workplace to an alternative workplace: You can claim the cost of travelling from your usual workplace to an alternative workplace, such as a client's premises, and then back to your normal workplace or directly home.
- Shifting places of employment: If you regularly work at more than one site each day before returning home, you can claim the cost of travel between these workplaces. This is considered itinerant work, and you can claim the cost of driving between these workplaces and your home.
- Bulky tools or equipment: If you need to carry bulky or heavy tools or equipment that you use for work and cannot leave them at your workplace, you may be able to claim travel expenses. This includes situations where you travel directly from your home to a workplace with these tools or equipment.
It is important to note that the rules regarding tax deductions for travel expenses can be complex and may vary based on your location and specific circumstances. It is always recommended to consult with a tax professional or refer to the guidelines provided by your local tax authority for detailed information.
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Travel from workplace to off-site meetings
When it comes to claiming for travel expenses, there are a few key things to keep in mind. Firstly, it's important to understand the difference between a permanent and temporary workplace. A permanent workplace is typically defined as a place where an employee spends more than 40% of their working time and attends for a period lasting more than 24 months.
In the context of travelling from the workplace to off-site meetings, this distinction is crucial. If the off-site meeting location is considered a temporary workplace, you may be able to claim travel expenses for travelling to and from that location. This includes travel by airplane, train, bus, taxi, or your own car, as well as associated costs such as tolls, parking fees, and even baggage used exclusively for work travel.
However, it's important to note that simply travelling from your primary workplace to an off-site meeting location may not automatically qualify for a travel expense claim. The off-site meeting location would need to be considered a temporary workplace, and the travel expenses should not be part of your standard commute. For example, if you typically work in an office but occasionally travel to a client's office for a meeting, the client's office could be considered a temporary workplace, and the travel expenses may be claimable.
To claim travel expenses for off-site meetings, it's important to keep detailed records, including dates, locations visited, and any associated costs such as transportation, accommodation, and meals. These records will be essential when submitting a claim and can help ensure you receive any tax deductions or reimbursements you may be entitled to.
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Working from home
Who is eligible for working from home tax relief?
You can only claim tax relief if you are required to work from home and are not receiving expenses from your employer to cover the extra costs. If you are working from home by choice, you are not eligible. For example, if you are working from home due to coronavirus, or because your office is full, you cannot claim tax relief.
You can claim tax relief for things that directly help you do your job, such as:
- Business phone calls
- Internet access for work use
- Equipment used exclusively for work, such as a desk or chair
How to claim working from home tax relief
To apply for working from home tax relief, you need to follow these steps:
- Check you are eligible by answering the questions on the government portal
- Create a government gateway ID. You will need your national insurance number and one of the following: a recent payslip, P60, or passport
- After signing in, select the date you began working from home (you can put a date from a previous year and receive the tax relief together)
- Wait for your cheque to arrive from HMRC
It is important to note that you can also claim tax relief on other expenses and extra costs, such as business travel. However, HMRC does expect receipts and documentation for these. To apply, fill out a P87 working from home form.
The amount of tax relief you can receive is proportional to the tax you pay. Basic rate taxpayers receive 20% of the £6 per week figure, which is £1.20 per week or £62.40 per tax year. Higher-rate taxpayers receive 40%, which is £2.40 per week or £124.80 per tax year. Finally, additional-rate taxpayers (those earning over £100,000) receive 45%, which is £2.70 per week or £140.40 per tax year.
Yes, you can backdate your claim for up to four years. The deadline to claim for the 2020/21 tax year is 5 April 2025, and the deadline for the 2021/22 tax year is 5 April 2026.
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Travel to temporary workplace
Travel expenses between your home and your place of work are generally not tax-deductible. However, there are some exceptions to this rule.
The 24-Month Rule
The HMRC 24-month rule allows you to claim tax relief on travel expenses to a "temporary workplace". This rule applies if:
- You spend less than 40% of your working time at a workplace.
- You attend that workplace for less than 24 months.
As soon as you become aware that a contract will last longer than 24 months, you must stop claiming relief. The 24-month period refers to the calendar period, not the amount of time actually spent working.
Other Exceptions
You can also claim tax relief on travel expenses if:
- You have two or more normal workplaces. HMRC accepts that a person's home can be a normal workplace under certain circumstances.
- You have one or more regular work locations away from your residence.
- Your residence is your principal place of business and you travel between it and another work location in the same trade or business.
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Travel expenses
HMRC defines business travel as covering two types of journeys: journeys that form part of an employee's employment duties, such as travelling between appointments or to external meetings; and journeys related to an employee's attendance at a temporary workplace.
Travel between two workplaces is considered business travel, and any travel costs can be claimed as expenses. This includes travel between your workplace and an alternative workplace, or travel between two separate jobs without going home first. If you work from home because your job requires you to, then travel to other workplaces is considered business travel.
Travel to a temporary workplace is also considered business travel. If you have to go to a temporary place of work for less than 24 months, you are usually eligible to claim back travel expenses. This includes accommodation costs, food and refreshment costs, car parking and toll charges, and tools bought for work.
However, travel expenses cannot be claimed for ordinary commuting, which is any travel between a permanent workplace and home, or any other place that is not a workplace. This includes travel between your home and everyday place of work, running errands on the way to or from work, and travel to a second job when your home is your place of work for the first job.
There are some limited exceptions to the rules on claiming travel expenses for ordinary commuting. For example, if you stay over in a different location because you have an early meeting the next day, you cannot claim the cost of your hotel stay, but you can claim the cost of a late-night taxi home. If you are required by your employer to carry bulky tools in your vehicle that cannot be safely secured at work, you may be able to claim for the cost of commuting to work.
When claiming travel expenses, you will need to provide records to back up your claim. This could include details of journeys made, such as a diary of locations visited and dates; payslips that show business mileage or lodging costs paid by your employer; and receipts for accommodation, subsistence and other travel expenses.
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Frequently asked questions
No, you can't claim for travel between your home and your permanent workplace. This is known as "ordinary commuting".
If you have two or more normal workplaces, you can claim for travel between them.
If you have to travel to a temporary workplace, you can claim this as a business expense. A workplace is usually considered temporary if you are there for less than 24 months and spend less than 40% of your working time there.
If you work from home because it's convenient for you, travel to other workplaces is still considered ordinary commuting. However, if you work from home because your job requires you to, then "home" becomes a workplace and travel to other workplaces becomes a business expense.